EXPENDITURES, FEES AND TAXES

GENERAL

The situation concerning taxes and costs related to property in Spain can change; please consult your lawyer/tax adviser regarding possible changes in tax legislation.

PURCHASE COSTS

Fees and taxes related to the purchase of a property under individual ownership amount to approximately 10-13% of the purchase price and are to be paid by the buyer:

TRANSFER TAX (Impuesto de Transmisiones Patrimoniales) levied at 8-11.5% of the purchase price on a re-sale property.
This tax follows a progressive basis of calculation depending on the value of the property:

The first 400.000€ will be taxed at 8%
The amount from 400.000 - 600.000€ at 9%
From 600.000€ - 1.000.000 at 10%
From 1M. to 2M. at 12%
Above 2M. at 13%

or
VAT (IVA)
VAT (IVA) is to be paid on the sale of newly built houses or flats, the tax is 10% + Documented Legal Acts Tax (AJD) of 1.5% (rising to 2% for new-built properties over €1.000.000), on the sale of building plots and commercial property it is 21%.

Lawyer fees amount to approximately 1% of the value of the transaction.

Notary fees, which are fixed at an official scale depending on the value of the property.

Land registry fees related to the entry of the property into the land registry.

PLUSVALIA

The Plusvalía Tax is a municipal tax that is calculated according to the increased value of the plot of land since the last sale. The seller pays this tax.

YEARLY EXPENSES RELATED TO THE OWNERSHIP OF PROPERTY

I.B.I. (Impuesto sobre Bienes Inmuebles) - the land tax that is raised by the municipality, calculation is based on the cadastral value, the assessment is sent by mail, therefore important to ensure that after change of ownership the correct mailing address is provided to the cadastral office.

Basura - waste disposal charges also raised by the municipality

All other taxes vary dependent on the individual situation of residence and taxability – please consult your tax adviser.

- please verify with your tax adviser/lawyer -